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Bill Summary · SB 902

Summary: SB 902 (Session 2025) – Ferry Division Performance Audit (North Carolina)

Purpose

Direct the Office of the State Auditor to conduct a comprehensive performance audit of the North Carolina Department of Transportation (NCDOT) Ferry Division. The audit follows a recommendation from the Joint Legislative Transportation Oversight Committee and aims to assess financial practices, operations, and revenue optimization opportunities to improve efficiency and recoup costs.

Key Provisions

  1. Auditor-Directed Performance Audit

    • The State Auditor will perform a broad performance audit of the Ferry Division.

  2. Financial Audit Focus

    • Review of the Division’s operations and maintenance spending.
    • Evaluation of budget practices to identify financial efficiencies and potential cost savings.

  3. Operations, Capital Projects, and Maintenance

    • Assess current operations, ongoing capital projects, and maintenance activities.
    • Provide recommendations for long-term strategies to maximize revenue and reduce costs.

  4. Route System Evaluation

    • Examine the current ferry route system.
    • Consider potential route and schedule adjustments to optimize revenue and minimize costs.

  5. Revenue Diversification

    • Explore potential options to diversify revenue to support ferry capital project needs.
    • Investigate methods to recoup operating costs, beyond traditional fare receipts.

  6. Additional Findings

    • Include other items the State Auditor deems relevant to evaluate (broad scope for additional insights).

Timeline and Reporting

  • Reporting Deadline: The State Auditor must deliver the audit report no later than October 1, 2026.
  • Recipients: The report will be submitted to the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division.

Effective Date

  • The act becomes effective upon becoming law.

Practical Impact

  • The bill formalizes an external, independent evaluation of the Ferry Division's financial health, efficiency, and strategic options.
  • Potential outcomes include:
    • Recommendations for cost-saving measures and improved budgeting practices.
    • Proposed changes to ferry routes and schedules to boost revenue.
    • Strategies to diversify revenue streams to fund capital projects and offset operating costs.
    • Actionable long-term plans to maximize revenue while maintaining service levels.

Who is Affected

  • The North Carolina Ferry Division (within NCDOT) and its budgeting, operations, and capital projects.
  • State policymakers and committees overseeing transportation oversight and fiscal planning (Joint Legislative Transportation Oversight Committee; Fiscal Research Division).

Notes

  • This is a focused accountability/efficiency measure prompted by legislative oversight.
  • The bill is procedural in nature, directing an audit rather than mandating immediate policy changes.

Compiled from official sources — confirm details with the bill’s official record.

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